Czechia and Slovakia seek extension of permission to sell products made from Russian oil – Financial Times

Slovakia and Czechia are requesting an extension of exemptions from EU sanctions that permit the sale of products made from Russian oil, fearing the impact on their industry and price rises.

Source: The Financial Times, as reported by European Pravda

Details: Despite the EU oil embargo, Slovakia, Czechia and Hungary have been permitted to continue using oil from the Russian Druzhba pipeline until alternative supplies become available.

But an exemption permitting Slovakia to sell products made by refining Russian oil expires on Tuesday 5 December. Prague and Bratislava aim to seek an extension of this regulation, to be included in the upcoming twelfth EU sanctions package against Russia.

"If we do not export these products to the Czech Republic it could have a wider impact on the central Europe region. It could increase prices in several countries," a Slovak official told the Financial Times.

The Slovak official said Slovnaft, a refinery owned by Hungary’s MOL Group, has not yet been able to make the transition from heavy Russian crude oil to the lighter oil that is imported from other countries. It has taken longer than anticipated and will cost about €200 million.

The Czech government is pushing to complete the modernisation of a pipeline connecting the Mediterranean port of Trieste with Central Europe, which would reduce dependence on supplies through Druzhba, but this will not happen until next year.

Poland and the Baltic states, however, are insisting that the exemption from sanctions cannot be extended, the Financial Times reports.

"We have consistently called for stopping all co-operation between EU member states and Russia, especially in the area of oil trade. The main reason behind it is to hit Russia’s budget used for military operations in Ukraine," one EU diplomat said. 

European Commission representatives participating in negotiations on the 12th package of sanctions against Russia are confident that this issue will not disrupt its adoption.

Czechia is also seeking an exemption from the sanctions to import Russian steel, which its automobile industry is still dependent on.

Support UP or become our patron!